Asian Currencies Hold Steady as Strong U.S. Inflation Data Boosts Dollar 
Wall Street Futures Rise Ahead of Trump-Xi Summit as Tech Stocks Lead Market Rally 
Japan Considers Extra Budget Aid Amid Rising Fuel and Utility Costs 
US, Japan Reaffirm Strong Currency Coordination Amid Yen Volatility 
U.S. Urges China to Help Curb Iran’s Actions in Gulf, Rubio Says 
S&P Global Revises Mexico Credit Outlook to Negative Amid Rising Debt Concerns 
Asian Currencies Steady as Trump-Xi Summit, Inflation Concerns Boost Dollar 
US-China Trade Talks Begin in South Korea Ahead of Trump-Xi Beijing Summit 
ASX Names Former Euronext Executive Anthony Attia as New CEO 
US Stock Futures Slip as Iran Tensions and Hot Inflation Data Pressure Wall Street 
Asian Stocks Edge Higher as Tech Shares Rise Ahead of Trump-Xi Beijing Summit 
OECD Sees Bank of Japan Raising Interest Rates to 2% by 2027 
Rubio Discusses Iran Crisis and Strait of Hormuz Disruptions With UK and Australia 
Oil Prices Hold Above $100 as Trump-Xi Meeting and Iran Conflict Keep Markets on Edge 
Trump and Xi Temple of Heaven Visit Highlights Trade and Diplomacy Goals 
Trump Says Iran Ceasefire ‘On Life Support’ as Oil Prices Surge Above $104 
Oil Prices Slip as Strait of Hormuz Disruptions and U.S. Inventory Data Keep Markets on Edge 
The U.S. dollar held onto its sharpest gain in a week on Wednesday, driven by safe-haven buying after an Iranian missile attack on Israel, heightening concerns of a wider conflict in the Middle East.
Euro, Yen, and Safe-Haven Currencies React
In early Asia trade, the euro dipped below $1.10, marking its largest drop in nearly four months. The yen and Swiss franc remained steady at 143.45 per dollar and 0.8463 per dollar, respectively, while the New Zealand dollar nursed a 1.1% overnight fall to $0.6283. Oil prices also spiked 2.5% on the news.
U.S. Dollar Index Surges Amid Tensions and Data
The U.S. dollar index jumped about 0.5% overnight to 101.2, its largest rise since September 25. The increase was partly fueled by a stronger-than-expected U.S. job openings report, adding to safe-haven demand amidst Middle East unrest.
Israeli-Iranian Tensions Drive Market Uncertainty
Israel reported more than 180 ballistic missiles fired by Iran, with Iran’s Revolutionary Guard Corps claiming the attack was in retaliation for Israeli actions against Hezbollah militants in Lebanon. No injuries were reported, but potential escalation concerns linger as Israel considers further military responses.
Oil prices are expected to fluctuate depending on Israel’s next steps, particularly if it targets Iran's military or oil assets, according to ANZ analysts.
Other Currencies and Market Reactions
The Australian dollar fell to $0.6883, though upbeat retail sales data limited losses. The British pound also saw a 0.7% drop before stabilizing at $1.3278 in early Asian trade.
New Zealand Interest Rate Outlook
A business survey in New Zealand suggested rapidly cooling price pressures, raising the likelihood of a 50-basis point rate cut next week. Westpac and BNZ have revised their forecasts to reflect this expectation, with markets pricing in a 77% probability.
U.S. Domestic Developments
Traders are also monitoring the ongoing dockworkers' strike on the U.S. East and Gulf coasts, which has halted about half of the country's ocean shipping. Additionally, a vice-presidential debate between Democrat Tim Walz and Republican JD Vance is scheduled for later in the day, along with anticipated U.S. private payroll data.
